080305_JPM Series Fix and Win ... - Börse Stuttgart

interest or similar income to the fiscal authorities of his/her country of residence or deemed residence or has
provided a tax certificate from his/her fiscal authority in the format required by law to the relevant paying agent.
Where withholding tax is applied, it will be levied at a rate of 15 per cent. during the first three-year period
which started on 1 July 2005, at a rate of 20 per cent. for the subsequent three-year period and at a rate of 35 per
cent. thereafter.
When used in the preceding paragraph "interest" and "paying agent" have the meaning given thereto in the
Luxembourg law of 20 June 2005. This would include The Bank of New York (Luxembourg) S.A. as a paying
agent.
Resident individuals
Interest on Instruments paid by a Luxembourg paying agent to an individual Holder who is a resident of
Luxembourg not holding the Instruments as business assets will be subject to a withholding tax of 10 percent
which will operate a full discharge of income tax due on such payments.
An individual Holder who is a resident of Luxembourg not holding the Instruments as business assets will not
be subject to taxation on capital gains (including foreign exchange gains) upon the disposal of the Instruments,
unless the disposal of the Instruments precedes the acquisition of the Instruments or the Instruments are
disposed of within six months of the date of acquisition of these Instruments. Upon redemption or exchange of
the Instruments, the portion of the redemption or exchange price corresponding to accrued but unpaid interest is
subject to the aforementioned 10 percent withholding tax.
An individual Holder who is a resident of Luxembourg holding the Instruments as business assets will be
subject to taxation as set forth in the chapter "Companies established in Luxembourg".
Companies established in Luxembourg
A corporate Holder of Instruments or a non-resident corporate Holder who has a permanent establishment in
Luxembourg with which the holding of the Instruments is connected, must, for corporate tax purposes, include
in his taxable income (i) any interest received or accrued on the Instruments and (ii) the difference between the
sale or redemption price (including accrued but unpaid interest) and the lower of the cost or book value of the
Instruments sold or redeemed (including foreign exchange gains).
Other Taxes
Luxembourg net wealth tax will not be levied on a Holder of Instruments, unless the Holder is, or is deemed to
be, a company resident in Luxembourg for the purpose of the relevant provisions; or the Instruments is
attributable to an enterprise or part thereof that is carried on through a permanent establishment in Luxembourg.
There is no Luxembourg registration tax, capital tax, stamp duty or any other similar tax or duty payable in
Luxembourg in respect of or in connection with the execution and delivery of the Instruments or the
performance of the Issuer’s obligations under the Instruments, except that courts proceedings in a Luxembourg
court or the representation of the Instruments to an "autorité constituée", could imply registration of the
Instruments at a fixed registration duty.
European Union Directive on the Taxation of Savings Income
As part of an agreement reached in connection with the European Union ("EU") directive on the taxation of
savings income in the form of interest payments, and in line with steps taken by other relevant third countries,
Jersey introduced with effect from 1 July 2005 a retention tax system in respect of payments of interest, or other
similar income, made to an individual beneficial owner resident in an EU Member State by a paying agent
established in Jersey. The retention tax system applies for a transitional period prior to the implementation of a
system of automatic communication to EU Member States of information regarding such payments. During this
transitional period, such an individual beneficial owner resident in an EU Member State will be entitled to
request a paying agent not to retain tax from such payments but instead to apply a system by which the details of
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